Bush And Bernanke Support Plan For Economic Stimulus

by Darren

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President Bush and Fed Chairman Ben Bernanke both support doing something to stimulate the economy of the United States in order to avoid a recession. There were no clear specifics implemented on what a recovery plan would look like.

Although Republicans and Democrats differ over what provisions should be part of any economic stimulus package, there’s widespread agreement that tax rebates along the lines of the $300-$600 checks provided in 2001 are likely to be part of the measure. The country last suffered a recession in 2001.

“To be useful, a fiscal stimulus package should be implemented quickly and structured so that its effects on aggregate spending are felt as much as possible within the next 12 months or so,” Bernanke told lawmakers. The notion behind the rebates, for instance, is to get money into the hands of consumers quickly so that they boost spending, helping energize the national economy.

Bernanke warned that if the stimulus package arrived too late, it wouldn’t help spur the economy in the needed manner. The comments from Bernanke came after bad news had already been released concerning the economy. Newhome construction plunged last year by 24.8 percent, the largest drop in 27 years, further making pessimists of most investors today.

So far stocks are in the Red for the day.

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